Greetings!
 Sorry, I was planning to do my best to put together posts that were positive, you know with a happy ending, like the employer and employee’s worked together and lived happily ever after in business bliss. But we live in the real world.

 Unfortunately,  every story has a villain and increasingly for employers that is the Government, more specifically the United States Department Of Labor. There are multiple issues or rules the DOL has changed over the last several years, but for this story we will look at only one change, and it could be a doozy to your business.

 –Here’s the scoop as it stands today. The DOL is changing the Fair Labor Standards Act rules concerning white-collar exemptions from overtime pay. Here are the two changes among others that are likely to cost you big money and that you need to plan for.

First is a new salary threshold for exempt employee’s in the range of $50,000.00 annually, yes you read that right, almost double the current threshold.

Second, the salary threshold will automatically increase annually based on either a percentage of weekly earnings or an inflation index. So budgeting will be so easy.

The best part is these rules will likely have an effective date of on or before July 1st 2016.

If your organization has white collar employees that are considered exempt from overtime, you will need to prepare a plan to either increase the salary to the new threshold along with conducting a more restrictive duties test to deem the employee’s as exempt, or a plan to convert current exempt employee’s to nonexempt and subject to overtime pay.

Additional Thoughts, the DOL has estimated that some 5 million, (yes that is 5 with six 000000 zeros), employees will need to be converted to non-exempt status.

Employers will possibly need to develop a new compensation plan, including rate of pay and or method of pay, taking into account possible overtime pay.

Possibly redesign of job descriptions, job schedules, staffing, and wage and hour policies.

 Communicate the changes and the reason for the changes.

 Training or retraining of formerly exempt employees regarding time reporting procedures, compliance with overtime rules, and adherence to rest and meal breaks.

Training supervisors on how to manage, counsel, coach, and discipline employees to comply with time keeping and record keeping requirements.

 Here are the “Top 10 questions Employers have about the Newly Proposed Overtime Regulations”.

 Here is the Full Monty from the DOL Proposed Rulemaking: Overtime